ASEAN set to introduce region-wide digital economy agreement
Despite ambitious aims for harmonisation, challenges loom due to socio-economic differences and diverse regulatory frameworks.
The Association of Southeast Asian Nations (ASEAN), supported by the World Economic Forum and the ASEAN-Korea Cooperation Fund, is gearing up to unveil the ASEAN Digital Economy Framework Agreement (DEFA), the first regional digital economy agreement covering digital ID, payments, data flows, and trade.
Despite aspirations for harmonisation, challenges persist due to socio-economic differences and varying regulatory frameworks. Negotiations initiated in September 2023 are expected to continue until 2025, with some member countries, like Thailand and Singapore, already collaborating on cross-border payments. The ASEAN digital economy is forecasted to surge from around USD300 billion to nearly USD1 trillion by 2030.
Regarding digital IDs, several countries are already making significant strides ahead. In the Philippines, the Register Anywhere Program (RAP) proposed by the Commission on Elections enables voters to register biometrically and cast ballots outside their home province at locations like malls and universities.
Meanwhile, Malaysia’s Sarawak state aims to launch its digital ID, Sarawakpass, by 2025, offering access to financial and public services as a platform for targeted assistance. Malaysia also plans to unveil its nationwide digital ID, MyDigital ID, by July next year.
Why does it matter?
The DEFA represents a significant effort towards regional digital integration within the ASEAN nations. However, interoperability will be critical to the success of the initiative. Given the advanced development of digital ID systems in certain countries, such as the Philippines and Malaysia, while others lag, establishing a common framework may prove challenging, introducing obstacles to negotiations. Additionally, the disparity in Southeast Asian economies on cyber incident prevention, mainly because of inconsistent standards for safeguarding personal data among member states, is also a cause of concern. Specific legislation addressing personal data protection is limited to Singapore, Malaysia, Thailand, the Philippines, Indonesia, and recently, Vietnam within the ASEAN region.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.